ELI5: How did redlining work?
I get that certain neighborhoods were systemically denied loans and it has resulted in racially segregated neighborhoods with severe differences in development and investment even today. But how did denying loans create racial segregation? I feel like I’m missing something in the way it’s commonly described:
If a Black person wanted to buy a house in a predominantly white neighborhood, the house wouldn’t be “redlined” and they could get the loan. if the Black person wanted to buy a house in a majority Black neighborhood, then they would be denied a loan…? or are loans based off of where you are moving from? what did Black people do when they grew up and wanted to move out, people had to go somewhere. Wouldn’t they then leave their neighborhood cause they couldn’t get a loan there? Were they then forced into renting? what am I missing?